Despite the better-than-expected Q3 earnings and a raised full-year profit forecast, the company's shares experienced a sharp drop in early Thursday trading due to a cautious outlook on consumer spending.
The company reported profits of $453 million for the three-month period ended Oct. 31, with revenue rising 5.2% to $160.84 billion.
The company's US unit saw a 4.9% rise in comparable sales during the three months ending in late October, outperforming competitors like Target Corp. and Home Depot Inc. who reported declines.
Walmart now expects annual sales to be up anywhere from 5% to 5.5%.
Walmart reported a 2% increase in adjusted earnings for the three months ending in October, slightly above the Street consensus forecast of $1.53 a share.
Walmart's CEO Doug McMillon mentioned that prices for some groceries are falling, which is good news for shoppers but puts pressure on the company to sell more.
Walmart's CFO, John David Rainey, cited a 'sharper falloff' in sales during the last two weeks of the fiscal third quarter. Factors such as higher interest rates, dwindling savings, and student-loan repayments are believed to be affecting demand.
Walmart, the multinational retail corporation, reported a 2% increase in adjusted earnings for the three months ending in October, slightly above the Street consensus forecast of $1.53 a share. Despite the better-than-expected Q3 earnings and a raised full-year profit forecast, the company's shares experienced a sharp drop in early Thursday trading due to a cautious outlook on consumer spending.
The company's US unit saw a 4.9% rise in comparable sales during the three months ending in late October, outperforming competitors like Target Corp. and Home Depot Inc. who reported declines. However, Walmart's CFO, John David Rainey, cited a 'sharper falloff' in sales during the last two weeks of the fiscal third quarter. Factors such as higher interest rates, dwindling savings, and student-loan repayments are believed to be affecting demand.
Walmart's CEO Doug McMillon mentioned that prices for some groceries are falling, which is good news for shoppers but puts pressure on the company to sell more. The company reported profits of $453 million for the three-month period ended Oct. 31, with revenue rising 5.2% to $160.84 billion. Walmart now expects annual sales to be up anywhere from 5% to 5.5%.
Despite the strong quarterly gains, the company offered a cautious outlook, noting that shoppers pulled back their spending in late October. This cautious outlook on US consumer spending led to a significant fall in Walmart's stock.
Factors such as higher interest rates, dwindling savings, and student-loan repayments are believed to be affecting demand.
Walmart's US unit saw a 4.9% rise in comparable sales during the three months ending in late October, while competitors like Target Corp. and Home Depot Inc. reported declines.
The adjusted earnings for the three months ending in October were $1.53 a share, a 2% increase from the same period last year and slightly above the Street consensus forecast of $1.52 a share.
Walmart's CEO Doug McMillon mentioned that prices for some groceries are falling, which is good news for shoppers but puts pressure on the company to sell more.
The company reported profits of $453 million for the three-month period ended Oct. 31, with revenue rising 5.2% to $160.84 billion.
Walmart now expects annual sales to be up anywhere from 5% to 5.5%.
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